Western gateway
Fremantle believes the strength of the Western Australian economy will boost trade growth in the coming years
Australia’s Fremantle plays up it regional prowess, as Iain MacIntyre reports
State Government-owned Fremantle Ports plays a pivotal role in Western Australian cargo trade, currently accounting for 80% by value of the state's seaborne imports and 12% by value of its seaborne exports.
With facilities at Fremantle and Kwinana, Fremantle Ports handled 26.1m tonnes in the 2010-2011 financial year (consistent with the previous 12 months) worth a total value of A$26bn (US$26.3bn).
Via its Inner Harbour, the port handles almost all of the state's container trade and set a new container throughput record of 598,000 teu in 2010-2011 (up 7.4% on the previous year). These facilities also cater for motor vehicle imports, livestock exports, other general cargo trades, cruise ships and visiting naval vessels.
The Outer Harbour, located 20 kilometres to the south at Kwinana, is one of Australia's major bulk cargo facilities, handling grain, petroleum, liquid petroleum gas, alumina, mineral sands, fertilisers, coal, iron ore, sulphur and other bulk commodities. Three of the jetties in the Outer Harbour are operated by private companies.
Although the port company suffered an almost 20% comparable drop in net after-tax profit to A$11.79m (US$11.95m) during the 2010-2011 year, that was above forecast due to both expenditure control and a faster-than-expected recovery in trade following the Global Financial Crisis.
Fremantle Ports external affairs manager Ainslie de Vos says the strength of the Western Australian economy will see further growth in the port's trade over the next few years.
“The overall trade outcome for 2010-2011 was maintained at a similar level to the previous year, with some areas outperforming expectations,” Ms de Vos told Port Strategy.
“[In addition to the record container throughput], Fremantle Ports' bulk business operations at the Kwinana Bulk Terminal and Kwinana Bulk Jetty also performed ahead of forecasts, with an increase of 35% on last year's results.”
Deepening of the Inner Harbour and associated berth works was completed in April 2011. This provided for larger containerships and enabled the creation of 27 hectares of reclaimed land for port-related operations.
This year, Fremantle Ports signed an agreement with Australian-based company Mineral Resources to export up to 4.4m tonnes a year of iron ore and has also contracted with Griffin Coal to export 750,000 tonnes of coal for four years.
“The contract with Mineral Resources required new and upgraded export infrastructure at the Kwinana Bulk Terminal. This work, costing A$44m and largely funded by Mineral Resources, is now in the commissioning stage, with the company’s first shipment of iron ore exported [in November].
“Important benefits to Western Australia include: direct capital expenditure of A$164m; State revenue of A$1.782bn from iron-ore sales in the first three years of operation; mining royalty payments of an estimated A$105m in the first three years; direct employment with MRL of 450 positions during construction, and direct employment of 250 persons during operations.”
Ms de Vos believes the key strengths of Western Australia's biggest and busiest general cargo port lie in its forward planning, and flexibility to meet changing economic conditions.
“Facilitating trade to help our customers, supporting our local communities and operating in an environmentally-sound manner are the foundations of our business.
“Annual survey results showed that 95% of shipping line customers were satisfied or very satisfied with Fremantle Ports’ services. In community survey outcomes, overall satisfaction levels with Fremantle Ports’ performance are also good and community support for the continuing role of the Inner Harbour as a working port remains strong -- an important factor in the long-term sustainability of the port.
“Although Government-owned, Fremantle Ports was commercialised in 1996 and operates on commercial principles. This has assisted in establishing successful partnerships with the private sector to develop trade opportunities.”
Looking ahead, Ms de Vos says ensuring efficiency in landside logistics is essential to the ongoing success of Fremantle.
“Fremantle Ports is working closely with the Department of Transport, other Government agencies and industry to achieve improved efficiency in port-related freight movements, both road and rail.
“Increasing the share of container trade transported to and from the port by rail is an important element of this, with a number of strategies in place to help achieve it.”
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